U.s. Physical Therapy, Inc. · NYSE:USPH
U.s. Physical Therapy — Investor Presentation (August 2024)
30 slides from U.s. Physical Therapy's investor presentation, Aug 16, 2024
Slide 1: USPh cover
+ ti USP. QBISPARTNER
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer 2 Forward-Looking Statements This presentation contains forward-looking statements, which involve numerous risks and uncertainties. Included are statements relating to opening of new clinics, availability of personnel and reimbursement environment. The forward-looking statements are based
Slide 3: USPh At a Glance
681 Outpatient Physical and Occupational Therapy Clinics (5) 42 State National Footprint (5) 86% Physical Therapy Operations % of Revenue(1) 14% Injury Prevention Services % of Revenue(1) >$30bn US Rehabilitation Market >10% No Company Has Greater Than 10% Market Share(2) Partner of Choice with Expe
Slide 4: Expanding National Footprint of Physical Therapy Clinics
Expanding National Footprint of Physical Therapy Clinics 4 Color Scheme 0 155 217 155 155 155 20 81 163 124 59 129 170 68 61 254 163 11
Slide 5: Large and Growing Market Opportunity
Large and Growing Market Opportunity 5 $30B+ U.S. rehab market projected to grow to $40B+ by 2025 Favorable demographics – physically active, aging and obese population segments Significant market potential ~50% of Americans over 18 years old develop a musculoskeletal injury that lasts more than 3 m
Slide 6: Outpatient Clinics are the Leading Setting For Care
Outpatient Clinics are the Leading Setting For Care 6 Orthopedic rehab is the primary driver of physical therapy services, representing approximately 60% of visits Source: “Industry Trends in M&A and Total Addressable Market Study” (Bain & Company, WebPT). Outpatient Clinics Hospitals; State, Local,
Slide 7: Payors See Significant ROI for Physical Therapy
Payors See Significant ROI for Physical Therapy 7 Total Treatment Cost~$79K Hip replacement surgery($56,000) Inpatient care($15,000) Total Treatment Cost~$85K Hip replacement surgery($56,000) Inpatient care($15,000) Readmission Rate of20% Readmission Rate of10% Source: “Industry Trends in M&A and To
Slide 8: Competitive Landscape
Competitive Landscape 8 Source: “Industry Trends in M&A and Total Addressable Market Study” (Bain & Company, WebPT). Source: “Industry Trends in M&A and Total Addressable Market Study” (Bain & Company, WebPT). Select Medical used as proxy for largest physical therapy operator in the U.S. with 1, 925
Slide 9: Growth Strategy
Growth Strategy 9 Drive organic growth through de novo PT/OT clinic openings, utilize true partnership model Maximize profits of existing facilities by growing patient volume, improving pricing, increasing efficiencies and adding programs and services Augment organic growth through strategic acquisi
Slide 10: Highly Retentive, Partnership Model
Highly Retentive, Partnership Model 10 Specialize in trauma, sports, work-related and pre- and post-surgical cases Partner with experienced physical therapists Drive volume via referrals Augment sales with marketing reps Organic growth includes lower cost de novo start up clinics Strategic acquisiti
Slide 11: More Resources, Less Administrative Burden: USPh Partnership Advantages
More Resources Less Administrative Burden USPh Partnership Advantages 11 Accounting HR Real Estate Construction Purchasing Marketing Compliance Legal IT Capital and Resources to Enhance Development Rate No Personal Financial Risk Aligned Practice Incentives Unlimited Earnings Potential Enhanced Bene
Slide 12: Acquisition Strategy
Acquisition Strategy 12 Completed more than 50 acquisitions since 2005 ranging in size from 3 to 52 clinics Acquisitions include more than five industrial injury prevention services businesses Seeking & evaluating M&A transactions is part of USPh’s DNA Acquisition criteria: Owner therapists continue
Slide 13: New Clinics Since August 1, 2023
New Clinics Since August 1, 2023 13 40 clinics added(1) since August 1, 2023 From 08/01/2023 – 07/31/2024 WV VT VA SC PA OH NJ NC ME MD MA GA FL CT TX OK MS LA AR AL AK TN 5 Includes de-novo clinics and acquisitions of single and multi-site practices.
Slide 14: Scale Advantages Create a Robust Business Case for Consolidation
Scale Advantages Create a Robust Business Case for Consolidation 14 Increased likelihood of selection for payor networks Scale is cited as a core criterion by specialty network managers and payors. Some limited leverage in negotiations with payors for reimbursement Higher likelihood of referrer acti
Slide 15: Revenue Mix by Segment and Payor Type
Revenue Mix by Segment and Payor Type 15 Physical Therapy Revenue Mix by Payor Type Second Quarter Ended June 30, 2024 Other Workers Comp Private Insurance & Managed Care Medicaid Medicare Revenue Mix by Segment Type Second Quarter Ended June 30, 2024 Physical Therapy Operations Industrial Injury Pr
Slide 16: USPh Physical Therapy Growth Drivers
USPh Physical Therapy Growth Drivers 16 In 2019, the Company sold interest in a partnership, which operated 30 clinics. In 2020, the Company sold 14 previously closed clinics and closed 34 clinics. Number of Clinics (1) Daily Patient Visits Per Clinic Number of Patient Visits (in thousands) Both pri
Slide 17: Daily Physical Therapy Volumes Progression
Daily Physical Therapy Volumes Progression 17 Continue to see record-high volumes Average daily visits per clinic was at an all-time high of 30.6 for the 2024 Second Quarter COVID Trough Average Visits per Clinic per Day
Slide 18: Physical Therapy Operations
Physical Therapy Operations 18 Note: Excludes management contracts. Annual Gross Margin Percentage Quarterly Gross Margin Percentage
Slide 19: Industrial Injury Prevention
Today Services performed onsite at >600 client locations Industrial Injury Prevention 19 Industrial Injury Prevention services include industrial sports medicine and injury prevention; post offer testing; ergonomic services; occupational health and medical services; specialized solutions March 2017
Slide 20: Industrial Injury Prevention
Industrial Injury Prevention 20 Note: 2022 includes November 2021 acquisition with $26.7 million in revenue at an EBITDA Margin of 16.0%. Revenue ($ in millions) Gross Margin (%) Second Quarter 2024: Revenue +23.2% Gross profit +27.5% Gross Margin 21.4%
Slide 21: Strong Balance Sheet and Capital Allocation Strategy
Strong Balance Sheet and Capital Allocation Strategy 21 At June 30, 2024, we had $112.9 million in cash and $142.5 million outstanding on our term loan. We have $175 million available for borrowings under our revolving facility. A strong balance sheet and capital allocation strategy has allowed USPH
Slide 22: Executive Management
Executive Management 22 https://www.usph.com/about/senior-leadership/ https://www.linkedin.com/in/rick-binstein-66944512 Joined USPh as CFO in November 2020 Previously served as CFO for Capital Senior Living Corporation (NYSE:CSU) and Belo Corp. (NYSE: BLC) BBA & MBA Carey Hendrickson Chief Financia
Slide 23: Summary Investment Highlights
23 Summary Investment Highlights Significant scale with national footprint Large and growing market / favorable demographics Proven business model, driven by organic growth and acquisitions Strong cash flow and balance sheet Publicly-traded, pure play operator of rehab clinics Attractive Dividend Yi
Slide 24: One Partner
Aavh ONE PARTNER
Slide 25: Demonstrated Track Record of Consistent Growth
Transaction Overview Demonstrated Track Record of Consistent Growth Over the last decade, USPH has consistently grown, organically and through strategic acquisitions USPH Revenue ($ in millions) Adj. EBITDA(1) ($ in millions) 4.7% 15.5% 8.6% 7.6% 16.1% 9.6% 6.2% (12.2%) 17.0% 11.7% 19.2% 21.3% 18.4%
Slide 26: Second Quarter 2024 and 2023 Results
Second Quarter 2024 and 2023 Results 26 Operating Results, a non-GAAP measure, equals net income attributable to USPH diluted shareholders per the consolidated statements of income, less a change in revaluation of the put-right liability, Relief Funds, clinic closure costs, changes in fair value of
Slide 27: Segment Information
UsPA> Segment Information Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands, except per share data) (in thousands, except per share data) Gross profit $ 33862 32,207 $ 62,263 $ 63,064 Physical therapy gross profit $ 28,783 $ 28,222 $. 52847 55310 Physical therap
Slide 28: Reconciliation of Non-GAAP Financial Measures – Operating Results
Reconciliation of Non-GAAP Financial Measures – Operating Results 28
Slide 29: Reconciliation of Non-GAAP Financial Measures: Adjusted EBITDA and Margin
Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA Margin 29
Slide 30: Thank you
USP ONE PARTNER Thank you
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